Airshow is about planemakers focusing on sales to promote profits

Airbus and Boeing are leaving this week’s Paris Airshow towards ambitious growth in aviation services, as the demand for jets is flattening and the pressure to increase profit margins promotes the planemakers to deepen their airline operations.

The two planemakers set their stalls at the biggest air show in the world displaying a series of announcements setting them in competition with their suppliers and also with some airlines that recently ordered jets.

The overlap reflects complexity of the aviation market, leaving a large fleet of aircraft to upgrade or service and tens of thousands of people to train, though all services could become tools to help sell more jets.

“Many customers are looking for fixed cost per flight hour offering assured outcomes on availability. The future is that they want to get to support every day operations on the airplane.

For years, the air shows were all focused towards “moving the metal,” winning as many as possible. Orders are buzzing, but higher-margin services for the first time have taken a prime time slot with a volley of announcements from each company.

“We are the best placed to serve our aircraft as we know the aircraft nose to tail,” he told Reuters.

the newest division of Boeing starts on July 1 to triple Boeings defence and commercial services in 10-15 years and the existing unit will keep its services sales team supporting this effort.

Airbus said the aftermarket services worldwide business for jetliners will double to $3.2 trillion in the next 20 years.